Sponsor by Innity

Sponsor by cwyeoh

Sponsor by Nuffnang

Sunday, December 2, 2012

SCIENTEX BERHAD is engaged in investment holding, letting of properties and provision of management services. The Company has two operating segments: property segment, which is in the business of constructing and developing residential and commercial properties, and manufacturing segment, which is mainly in the business of manufacturing various packaging products and manufacturing materials for automotives interior. Included in this segment is also the marketing and sales of laminating polyurethane adhesives. The packaging business unit manufactures various packaging products, which caters for packaging for logistics purposes, general purpose packaging and packaging for bulk handling. The polymer business unit manufactures polyvinyl chloride (PVC) leather cloth, PVC/polypropylene (PP) and PVC/polyethylene (PE) foam and thermoplastic olefin/PP foam sheets for automotive instrument panels, door trims and headlining for car manufacturers in the Asia Pacific region.

Revenue decreased 0.3% but higher than preceding year corresponding quarter 10.1%, eps increased 18.6% and also higher than preceding year corresponding quarter 12.6%, cash generated from operating enough to cover financing expenses but still increase borrowings and spent 10.9% of Group cash to cover investing expenses, operating margin maintain around 12%, liquidity ratio indicate can meet current obligation but must keep inventory liquid, gearing ratio indicate improve liabilities ratio by reducing borrowings but watch out if current assets continue decrease, all accounting turnover period is good which can generate free cash flow, higher inventory and higher revenue can indicate Group sales is positive trend, higher property development cost can indicate more property sales income in the future, all segment got better profit

First Support Price

2.9

Second Support Price

2.65

Risk Rating

MODERATE

Research House

Maybank Target Price

3.54 (2012-10-10)

TA Target Price

3.57 (2012-10-30)

Accounting Ratio

Return on Equity

16.58%

Dividend Yield

5.39%

Operating Profit Margin

12.96%

Net Profit Margin

13.07%

Tax Rate

14.78%

Asset Turnover

1.089

Net Asset Value Per Share

2.44

Net Tangible Asset per share

2.44

Price/Net Tangible Asset Per Share

1.0

Cash Per Share

0.17

Liquidity Current Ratio

1.3882

Liquidity Quick Ratio

0.7682

Liquidity Cash Ratio

0.1705

Gearing Debt to Equity Ratio

0.4743

Gearing Debt to Asset Ratio

0.3082

Working capital per thousand Ringgit sale

9.4%

Days to sell the inventory

62

Days to collect the receivables

53

Days to pay the payables

74

Technical Analysis

SMA 10

3.044 (Downtrend)

SMA 20

3.125 (Downtrend 4 days)

SMA 50

2.899 (Uptrend)

SMA 100

2.662 (Uptrend)

SMA 200

2.521 (Uptrend)

MACD (26d/12d)

-0.001296 ( 0.006087 )

Signal (9)

0.045773 ( 0.011767 )

MACD Histogram

0.047069 (Bearish trend 16 days)

Bolinger Upper Band

3.437

Bolinger Lower Band

2.813

My notes based on 2012 quarter 4 report (number in '000):-
- Higher revenue than FY11Q4 mainly due to higher demand for stretch film products mainly in the export markets in the Asia Pacific region but pbt offset by one off costs incurred for the relocation of the woven production from Malaysia to Vietnam to tap on better operational efficiencies and comparative cost advantage as part of the continous efforts to drive costs down and compete in a highly competitive environment

- Higher pbt mainly due to higher margins achieved from the products mix sold by the property division